                                 CODE OF VIRGINIA

DEFINITIONS (§ 6.2-2228)

As used in this chapter, unless the context requires a different meaning:

&#8220;Recipient&#8221; means a person whose principal place of business is in
the Commonwealth and that applies for sales-based financing and is made a
specific offer of sales-based financing by a provider. A recipient may also be
an authorized representative of such person. A person acting as a broker cannot
be a recipient.

&#8220;Sales-based financing&#8221; means a transaction that is repaid by the
recipient to the provider, over time, as a percentage of sales or revenue, in
which the payment amount may increase or decrease according to the volume of
sales made or revenue received by the recipient. Sales-based financing also
includes a true-up mechanism where the financing is repaid as a fixed payment
but provides for a reconciliation process that adjusts the payment to an amount
that is a percentage of sales or revenue.

&#8220;Sales-based financing broker&#8221; or &#8220;broker&#8221; means a
person that, for compensation or the expectation of compensation, obtains or
offers to obtain sales-based financing from a provider for a recipient.

&#8220;Sales-based financing provider&#8221; or &#8220;provider&#8221; means a
person that extends a specific offer of sales-based financing to a recipient.
Unless otherwise exempt, &#8220;provider&#8221; also includes a person that
solicits and presents specific offers of sales-based financing under an
exclusive contract or arrangement with a provider.

&#8220;Specific offer&#8221; means the specific terms of sales-based financing,
including price or amount, that are quoted to a recipient, based on information
obtained from or about the recipient, which, if accepted by a recipient, shall
be binding on the provider, as applicable, subject to any specific requirements
stated in such terms.

HISTORY: 2022, c. 516.